Japan, S.Korea factory output up, recovery under way |
Reuters - Jan 30, 2011 |
Industrial output in Japan and South Korea jumped more than expected in December in a sign that a draw down of inventories and a rebound in export demand will help to underpin recovery in the global economy this year.
The data from Japan is encouraging as it supports the central bank's view that the economy will likely resume growing this quarter after a contraction widely expected in the fourth quarter following the expiry of government incentives for car purchases.
Rising factory output also bolstered expectations that the Bank of Korea (BOK) will raise interest rates further this year to curb inflationary pressures.
Growing reliance on trade with neighbouring China is a risk to the outlook, because demand for Japanese and South Korean goods could suffer if China tightens monetary policy excessively to slow rising prices and stem bubbles in its property market.
Read Full Article from Reuters
- Posted: 2011-01-30 21:31:45
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